The Association of Manufacturers and Distributors Companies (Aecoc) has stressed that the VAT reduction applied to some basic products has been a “correct” measure because “it is beginning to take effect” and will contribute, to a greater extent, to the decrease in inflation food in the coming months.
After learning that food prices grew by 15.4% in the interannual rate in January, three tenths less than in December, due to the application of the VAT reduction, the AECOC explained that if the decision to lower the VAT on some foods “the increase would have been 17%”.
On the other hand, the association is also clear in its situation report: “If the VAT reduction had been extended to other essential products in the Spanish shopping basket, such as meat and fish, the CPI for food would would have stood at 13.7%, with a reduction in VAT at 5%, or at 11.7%, with VAT at 0%”.
Aecoc has highlighted that the food sector currently operates in an environment of high inflation of its essential costs, such as raw materials and energy.
More information in Europa Press.